Tri-Valley Real Estate Blog

Starter Home or Forever Home: You Decide

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Starter Home or Forever Home: You Decide

Buying your first home is an exciting experience. However, should you choose an affordable starter home or a forever home where you can put down roots?

Questions to Ask Before Buying Your New Home

Because most experts recommend staying in your home for at least five years, you’ll want to choose it carefully.

How Much Can You Afford?

According to the Consumer Financial Protection Bureau, most mortgage lenders have a maximum 43% debt-to-income ratio requirement. This threshold is in place to reduce the chance of homeowners having difficulty paying their mortgages while also paying their other living expenses.

Using a loan calculator, you can estimate your monthly mortgage payment for different homes. You may prefer to pre-qualify for a loan to discover how much money a lending institution might let you borrow.

You still have financing options if you don’t have the traditional 20% down payment amount for a conventional loan. You might qualify for FHA, VA, Rural Housing, or other loan products that don’t require much of a down payment. It’s a good idea to research what types of loans you may be eligible for.

Is it Likely That You’ll Have to Move?

People move for many reasons, including advancing their career, being closer to family members, and living in a different area. If you’re likely to move again, a starter home may be your best bet.

Where Is the Home Located?

You want to live in a safe area that is convenient to work, schools, and leisure activities.

What Homes Are Available?

You may have a particular area or neighborhood you’d like to live in. Search the local real estate market to see current offerings; you may find a great deal on a home that you might not consider purchasing otherwise.

Starter Home vs. Forever Home

Each option has pros and cons. There’s no one correct answer; your circumstances dictate which option might be a better choice for you.

Starter Home

A starter home is usually a smaller residence, typically a house or condo, that people buy intending to move again. They are sometimes older, and there’s generally not much property to go along with them.

Pros

  • Purchase prices are lower.
  • A smaller space means less upkeep.
  • You can potentially rent it out in the future.
  • You’ll build equity towards purchasing your dream home.

Cons

  • Starter homes are smaller.
  • They usually don’t have many upgraded features.
  • You may need to make repairs.

Forever Home

Your forever home should accommodate current and future needs, such as bedrooms for new children and home workspaces. It should be in a community you’re comfortable with and have the features you want.

Pros

  • Forever homes are usually larger.
  • You won’t need to move again.
  • These homes have more upgrades.
  • Lot sizes are usually larger.

Cons

  • These larger homes are more expensive, especially if they contain upgraded features.
  • More space means more upkeep.
  • Some of these homes are in neighborhoods with Homeowner Association rules and fees.

Moving Tips

Whatever type of home you’re moving to, using a moving checklist removes lots of stress. An important item is deciding who will move your belongings from your current residence to your new home. If you want to hire a professional mover, research local movers and read Angi reviews.

When you get to the quoting process, remember that legitimate movers inspect your home before they place a bid. Always get a written estimate; don’t accept estimates over the phone.

The Decision Is Yours

Before buying a home, it’s crucial to consider many factors. Whether it’s a starter or a forever home, the place you choose should meet your budget and needs.

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Six Healthy Flooring Options

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Plush carpet is a warm, comfortable floor covering, but for those with allergies, asthma or other health sensitivities, carpet may not be a safe choice. Here are six options for replacing the stained, hard-to-clean, allergen-ridden carpets in your home with a healthier type of floor.

CorkSix Healthy Flooring Options

This renewable resource is harvested from the bark of cork oak trees and makes a unique material for a healthy floor choice. Cork flooring is lightweight, waterproof, resists dust and mold and provides great sound insulation. It is a warm and soft material so it can get scratched or gouged, but is resilient and, as a bonus, can help your joints since it’s so soft and flexible that standing for long times on cork floors isn’t such a strain.

Ceramic and porcelain tile

Made from natural, renewable materials, tiles are durable, easy to clean and hold up well under humid and wet conditions. (Although porcelain tiles are slightly more water resistant than ceramic.) They come in a wide variety of styles, colors and sizes to enhance almost any room in the house. Cold floor tiles are easily warmed with a radiant heat system but can be slippery when wet.

Wood

Maple, oak, walnut and cherry are common types of wood that make beautiful, durable floors. And, although technically from the grass family, bamboo planks are also a lovely, healthy floor option. Although wood floors don’t do well with moisture and humidity, they can be refinished and sealed multiple times which extends their lifespans. Beware of volatile organic compounds (VOCs) that are present in some types of lacquered coatings.

Polished concrete

More homeowners are discovering the benefits and attractiveness of the smooth, high-luster appearance of polished concrete. This durable, easy-to-clean floor partners well with a radiant heating system and is available in many colors and designs. Using a low VOC sealer makes it a healthy, unique floor option.

Six Healthy Flooring OptionsNatural stone

One-of-a-kind marble, slate, granite and sandstone create beautiful, durable floors. Depending on the type of stone, this can be an expensive option and some stones can be scratched or chipped. But, when sealed with a safe finish, natural stone floors are easy to clean and can be warmed with radiant heating.

Linoleum

Not to be confused with vinyl (which is made of toxic materials and should be avoided), linoleum is made with linseed oil and other natural components. It is anti-static and anti-dust, water-resistant and durable. Sheet, tile or plank versions and many types of colors and designs give it great versatility. It’s a low maintenance, affordable option that is pleasant on the feet.

When deciding which flooring material is best for your home and budget, check for FloorScore and GREENGUARD Gold certifications. And read the product’s Material Safety Data Sheet (MSDS) so that you can identify components and ensure you’re not bringing potentially toxic chemicals and/or VOCs into your home.

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What is a Single-Family Home?

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Home sweet home can take on a lot of different forms, from cozy condominiums to towering townhouses. The single-family home, however, is probably the type of residential property most associated with our mainstream idea of what “home” looks like: four walls, a roof, and a yard of your own. White picket fence optional.

What Is A Single-Family Home?What is a Single-Family Home?

A single-family home is typically defined by two elements: who owns what, and the property’s ability to function as its own unit.

With a single-family home, the owner of the home owns both the building and the land it sits on. Contrast this with condo ownership, where the owner only has a claim to the interior of their individual unit and jointly owns common areas with other members of their association.

Single-family homes must also not share any utility, heating or air conditioning systems with any other dwellings. They have their own private entrances and exits and have direct access to the street. A single-family home is a free-standing residential building. Single-family homes are designed to be used as a single-dwelling unit, with one owner, no shared walls, and its own land.

The Pros And Cons Of Single-Family Homes

Single-family homes are great for anyone in need of that quintessential homeownership experience and everything that comes with it: privacy, your own yard, the freedom to (mostly) do what you want with your home. However, with that freedom comes a lot of responsibility.

If you’re considering purchasing a single-family home, here are some things to think about.

Pros Of Single-Family Homes

  • More space. Though single-family homes can take on all sorts of shapes, sizes, and square footage, in general, they tend to be a good choice for those who need more space – whether that means a bigger kitchen, more bedrooms, or a basement for storage. Plus, if the lot your home sits on has sufficient space, you have the ability to construct outbuildings for additional storage or living space.
  • More privacy. Because you and your neighbors aren’t all squished together into adjacent units with shared walls, you don’t have to worry about anyone overhearing private phone conversations or judging your taste in music.
  • Fewer neighborly nuisances. Along with more privacy, single-family homeowners don’t have to worry as much about noisy neighbors. Vacuuming at 3 a.m. or practicing your tap dance routine is perfectly acceptable when you don’t have downstairs neighbors (though you probably should clear it with your housemates, as a courtesy).
  • Freedom to build or modify. Don’t like the color of your single-family home’s siding? Change it! Want to build an addition to your home? Go wild. While other types of homeowners typically have less say over how the exterior of their home structures look or whether they can make significant changes to the property, single-family homeowners have much more freedom to decide what their home looks like, inside and out – which can be a great opportunity for those looking to buy a fixer-upper home.
  • Fewer rules. Although single-family homeowners in neighborhoods governed by a homeowners association (HOA) might have some limits on what they can and can’t do with the exteriors of their properties, these rules are typically less restrictive than some of the rules you might encounter with a condo association, which could include limits on the number and types of pets you can have or restrictions on things like smoking in your unit.

Contact Dale Corpus for all San Ramon real estate and all homes in the Tri-Valley area.

Keep Your Trees in Tip-Top Shape

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Keep Your Trees in Tip-Top Shape

What a blessing to be able to enjoy all the benefits that trees provide us! Not only are they beautiful to look at, but they offer shade in the summer, photosynthesis for oxygen and wood for building. This wonderful natural resource also enhances our quality of life, cleans the air, helps prevent water pollution and soil erosion, provides homes for birds and other wildlife and marks the seasons. Trees are well worth investing in and preserving.

If you are fortunate enough to have one or more trees on your property, it’s easy to take them for granted and let them grow without doing anything to help preserve and protect them. And many trees don’t need special attention to grow and thrive. But, like all living things, trees can benefit from preventative care. Being aware of and quickly responding to possible threats to their good health allows your trees to continue to provide all the wonderful benefits they bring to you and your property.

What to do to help your trees thrive

Annual inspections by an International Society of Arboriculture (ISA) certified arborist is a good idea. The arborist can identify pruning needs and ways to protect the tree from potentially damaging problems. Make sure the tree is getting enough water but also has proper drainage. Pools of water around the base of the tree can cause the tree to drown. Clear the deadwood from the tree and pull weeds so the tree gets the most nutrients from the soil.

What to watch for that can cause problems for your trees

Is your tree leaning? It’s not always a bad thing. Some trees were crowded while maturing and then self-corrected their upward growth, or the tree is exposed to continual high winds and has developed a strong root system to compensate. A tree suddenly starting to lean, however, indicates a problem that should be addressed promptly.

Does the tree have problematic bark or split tops? Deeper than normal cracks in tree bark or unusual amounts of peeling bark are worth noting. As are two distinct tops from one main trunk. Multiple tops weaken the tree as both tops take resources in the attempt to be the dominant stem of the tree.

Is there excessive deadwood or wood decay? Shedding an unusual number of limbs/branches indicates the tree is attempting to conserve resources by reducing its shape, which can mean there’s a problem. Tree decay often manifests as mushroom-like spores (aka conks) growing on the branches or trunk.

Are there indications of insects infesting the tree? There are three main types of insects that can endanger trees: those that bore into the stem, branches or roots, those that chew and attack the foliage or fruit and those that suck moisture from leaves and branches. Boring insects are the most dangerous.

How are the leaves and branches? Compare them to previous year cycles. Are there fewer leaves than normal? Are they changing color and falling at the normal times? Are they firmly attached? You can also break off a small branch, checking its color and flexibility. It’s good if it bends and the cambium tissue below the bark is green and damp. It’s concerning if the cambium is brown and dry and the branch was brittle.

More for Homeowners

Don’t Fix These 7 Things Before Listing a Home

5 Good Reasons to Refinance

What Should You Know about Real Estate Investment Property?

3 Common Real Estate Scams to Watch Out For

Tips for Choosing the Right Home Improvement Contractor

5 Good Reasons to Refinance

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reasons to refinanceRefinancing can lower your monthly payment, increase your home equity, or allow you to cash-out some of the equity in your home to use for other things.

Are you wondering if you should refinance? Keep reading for 5 good reasons to refinance to help you decide.

1. To Secure a Lower Interest Rate

You may be able to lower your interest rate by refinancing, especially if you bought your home many years ago or if your credit score has significantly improved.

One of the most financially significant terms on your loan is the interest rate. Even a change of a half a percent can mean a significant difference in both monthly payment and interest paid over the life of the loan.

For example, when purchasing a $300,000 home with 20% down, your monthly mortgage payment with a 3% interest rate would be $1,011 per month, before taxes and insurance. If that interest rate were to rise to 4%, the monthly payment would be $1,145. $134 more each month means $1,608 more in interest each year, or over $48,000 over the life of the loan.

A lower interest rate is one of the top reasons to refinance because it can save you thousands over the life of the loan.

Related: Right Now is a Great Time to Refinance Investment Properties

2. Shorten the Length of Your Mortgage Term

Another way to save money over the life of your mortgage is to refinance to a shorter length, usually from a 30 year mortgage to a 15 year mortgage. This is one of the smartest reasons to refinance because if you can swing a higher monthly mortgage payment (and it may not be as high as you think, depending on the interest rate you qualify for), you can end up owning your home outright in half the time.

In some cases, this will mean a significantly higher monthly payment, depending on interest rates. Talk to your lender to see if this might be an affordable option for you.

3. Switch from an ARM to a fixed-rate mortgage, or vice versa

If you purchased your home with an adjustable-rate mortgage (ARM) and the rates have increased past what you could get on a fixed-rate mortgage, you will likely benefit from refinancing.

Depending on expert predictions for interest rates, converting from a fixed-rate mortgage to an ARM may be a good way to save money each month if you plan to move in a few years.

Switching the type of mortgage you have is one of the best reasons to refinance, depending on all the details of your situation and the status of the economy.

4. Get Out of PMI

When you purchase a home with less than 20% down, you will be required to pay private mortgage insurance (PMI) to help protect the lender. If you have lived in your house long enough, or the market has increased significantly enough, you may have enough equity to get out of your PMI and save significantly on your monthly payment.

If you think you might have enough equity in your home to refinance out of PMI, contact a lender to begin the process and put more money back in your pocket each month.

5. Take Out Cash From Your Equity

One of the most popular reasons to refinance it to cash-in on the equity your home has built through a cash-out refinance. In some cases, this can be a risky financial decision, but it all depends on how you use the funds.

A cash-out refinance to finance home renovations that add value to your home is one financially smart way to use your home’s equity. On the other hand, taking cash out of your home’s equity to purchase things that depreciate quickly or have no resale value (think vacations, toys, etc.) may end up getting you further into debt without a good fiscal reason.

How Much Should You Put Down on Your First Home?

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put down on your first homeAs a well-qualified borrower, you have options when deciding how much you should put down on your first home. So how do you decide?

There are a few things to consider when making this decision, and we’ve laid them out for you here.

What is a Down Payment?

When you apply for a mortgage, the terms of your loan will vary based on many factors, and one of those is down payment. Your down payment is calculated as a percentage of the value of the home you are buying. For example, a 20% down payment on a $300,000 is $60,000.

For a long time, 20% was the standard minimum down payment. This number may be intimidating to you as a first-time home buyer, despite being a well-qualified borrower with excellent credit, a low debt-to-income ratio, and sufficient, verifiable income.

The good news is, down payments now start at just 3%, and in some cases, you may be able to borrow the down payment to make your initial investment nothing more than closing costs.

FHA Loan

An FHA loan is a loan insured by the Federal Housing Administration to protect lenders. This program allows lenders to offer a mortgage with as low as a 3.5% down payment.

Keep in mind that Private Mortgage Insurance (PMI) is standard until 20% of the principal has been paid or until there is 20% or more equity in the home. The PMI payment will vary, but is generally between 0.5% and 1.8% of the loan total each year.

This type of financing is particularly popular with first-time home buyers because it has a more lenient credit score requirement and allows borrowers to keep more cash in their pockets when investing in real estate for the first time.

Conventional Loan

Conventional loans are what most people think of when they hear the word “mortgage.” With down payments as low as 3%, there are a wide variety of terms for a conventional loan.

The best terms are offered to those with excellent credit. Generally speaking, conventional loans will work for those with a debt-to-income ratio lower than 43% and a credit score above 620.

Conventional loans will also require PMI until the borrower has paid 20% of the principal or has 20% or more equity in the home.

VA Loan

If you have served in the military, you are likely eligible for a VA loan, backed by the US Department of Veteran Affairs.

VA loans offer many benefits, including 0% down and no mortgage insurance. This can make buying a home attainable no matter your cash reserves. You’ll also enjoy protection from prepayment penalties and exceptionally attractive terms because lenders are protected by the US Department of Veteran Affairs.

If you qualify for a VA loan, it is almost certainly the best choice for you.

USDA Loan

A USDA loan is another option that will require 0% down. These loans are backed by the US Department of Agriculture to stimulate rural housing economies.

USDA loans are available to borrowers who make 15% above the median income or less and are looking to buy a home in a rural area. This is generally defined as a place with a population of 20,000 or less, but if you have a specific town in mind you can find out if it qualifies here.

A USDA loan is offered to those with credit scores of 640 or above and a debt-to-income ratio lower than 41%.

What’s Right for You?

The best way to decide what’s right for you is by working with an expert. Contact me today to talk about the types of mortgages on this list that may be right for you, and one of our experts can help you decide how much you should put down on your first home.

What Should You Know about Real Estate Investment Property?

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What Should You Know about Real Estate Investment Property?

An investment property is real estate purchased to generate income through rental income or appreciation. Investment properties are typically purchased by a single investor or a pair or group of investors together.  

First, know that the buying process is different for an investment property compared to a primary home. Before you invest in property, make sure you meet the following qualifications.

  • You’re Financially Stable

Investment properties require a much higher financial stability level than primary homes, especially if you plan to rent the home to tenants. Most mortgage lenders require borrowers to have at least a 15% down payment for investment properties, which is usually not required when you buy your first home. In addition to a higher down payment, investment property owners who move tenants in must also have their homes cleared by inspectors in many states.

Make sure you have enough money in your budget to cover the initial home purchase costs  as well as ongoing maintenance and repairs. As a landlord or rental property owner, you must complete essential repairs in a timely manner, which can mean expensive emergency plumbing and HVAC repairs. Some states allow tenants to withhold their rent payments if you don’t fix broken home utilities on time. Make sure you budget more money than you think you need for regular and emergency home repairs. Investment property expenses don’t just begin when tenants move in. You also need to budget money for advertising and credit checks to make sure you take in the best tenants possible. A great set of tenants are an asset for your property, while bad tenants can increase your expenses dramatically.

  • The Return On Investment (ROI) Is There

Real estate investors often see positive cash flow with their investment properties in today’s market, but the savviest investors calculate their approximate return on investment rates before they purchase a property.  If you buy a property in a solid area and you know that you can rent to reliable tenants, a 3% ROI is great. However, if the property is in an area known for short-term tenants, a 3% ROI may not be worth your time and effort.

  • You Have Time To Manage It

Investment property management still takes a lot of time. You have to put up advertisements for your space, interview potential tenants, run background checks on tenants, make sure that tenants pay their rent on time, perform maintenance on your property and make timely repairs if something in the home breaks down. You also must do all of this while working around your tenant’s “right to privacy,” a legal standard that prevents you from dropping by unannounced without at least 24 hours of warning in most states.

Before you decide to buy an investment property, make sure you have plenty of time to maintain and monitor your space.

 

Is Your Home’s Value Decreasing?

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Here are some key things that seriously pull down your home’s value.

Is Your Home's Value Decreasing?

#1. Poor curb appeal.

If you’re planning on selling your house you need to know that the very first impression a buyer is going to see is the exterior of your home. Most MLS cover photos of the listing need to either be the front of the house or the view from the house. Chances are, most people are going to take a picture of the outside of the house so this is the first impression buyers will see of the property. It’s important to make your homes curb appeal stand out and attract buyers in further. Clean up the yard, trim trees, bushes, shrubs, mow the lawn, and repair any unsightly flaws to the outside of the house such as leaky windows, broken steps, or cracked sidewalks. [Read more…]

Best Dumpling and Dim Sum Restaurants in Tri-Valley

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The East Bay Times recently came out with an article talking about some of the best dumpling restaurants throughout the bay area and several are right here in the Tri-Valley area. Everybody knows Din Tai Fung, the best dumpling restaurants in the area where you can watch them make all of the dumplings by hand outside the big glass windows at the front of the restaurant. But they’re not the only dumpling and dim sum restaurants worth checking out.

Din Thai Fung recently relented on their “no reservation” policy and are now accepting reservations, especially for large parties. This restaurant has been known to have lines out the door for several hours around some of the peak dining times but now, you can check out some of the other dumpling and dim sum restaurants.Best Dumpling and Dim Sum Restaurants in Tri-Valley

Dim sum, although it means “small bites” has been a relatively chastised as being different from dumplings. Call it what you will, these dumplings are some of the best in the Tri-Valley area.

Right here in San Ramon is Hung’s Kitchen. Located at 500 Bollinger Canyon Way, Hung’s Kitchen has been known to have the delicious juicy pork dumplings, xiao long bao , pan fried noodles and hot and sour soup. If you’ve never have those juicy pork dumplings, there unlike anything else. They mix in the ground pork, spices and other Asian flavors with jellied pork broth and as the dumpling steams the broth melts into a delicious and juicy pork dumpling.

Best Dumpling and Dim Sum Restaurants in Tri-ValleyKoi Palace has a couple of locations, one of which is in Dublin. This dim sum restaurant features dinner menus and a separate dim sum menu with soft and tender pork buns, chicken dishes, deep-fried shrimp, Shui Mai, spicy noodles and dozens of other delicious and tempting treats.

And finally, Lee Garden Seafood located at 5588 Springdale Ave. in Pleasanton. Crisp and sweet cream puffs, Shui Mai with shrimp and pork, spicy scallops, crispy fried shrimp balls, crispy shrimp dumplings, stuffed fried tofu and steamed, homemade dumplings all around out their fantastic a dim sum menu.

The next time you’re craving dim sum or simply some fantastic dumplings, check out one of these three local Tri-Valley restaurants to add to your list when the wait at Din Thai Fung is just too ridiculous.

 

Best New Subdivisions in San Ramon, California

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Best New Subdivisions in San Ramon, California

With beautiful weather, abounding employment opportunities and endless outdoor recreation, San Ramon is considered one of the best places to live in the United States. The booming housing market has demanded new housing be built and the resulting subdivisions are hot. Here is a tour of some of the best new subdivisions to consider, if you’re in the market to move!

3 of the Best New Subdivisions in San Ramon, California

The Preserve: Hillcrest by Lennar 

Hillcrest is a high-end community in San Ramon with new three-story townhome condominiums with amazing perks. Besides a huge, elegant clubhouse for community use, there is a beautiful swimming pool, sports courts, and multiple other parks. Whether you have a young athlete looking to play soccer, basketball, or baseball, you will find recreation spaces for all of these and more. This community is located close to some fantastic outdoor sights including Mount Diablo, the Iron Horse Trail, and Las Trampas Regional Wilderness Park. Starting at $1,140,880 and topping out at $1,348,880, there are 104 home sites, of which about two-thirds have been sold. These homes start at 1,822 square feet but can be increased depending on the plan. If you’re in the market for an immaculate new townhome, with luxurious amenities, schedule a tour and see what this area is all about. You can view these beautiful homes here:

Hillcrest at The Preserve New Home Community – San Ramon – San Francisco / Bay Area, CA | Lennar

The Highlands by Lennar 

Coming to the market soon is the newest single-family home subdivision, The Highlands. Also located in The Preserve in San Ramon, there are 124 homesites available. These custom-built homes will start at $2,000,000 for a 2,829 square foot home and increase from there, expanding up to 3,650 square foot homes, offered at $2,199,880. These homes will have the same amazing perks as the townhome condominiums above, including a community use clubhouse, swimming pool, sports courts, and multiple parks. These homes promote a healthy lifestyle with the outdoor recreation available nearby. You can learn more about these elegant homes at:

Highlands at The Preserve New Home Community – San Ramon – San Francisco / Bay Area, CA | Lennar

Twin Oaks by Toll Brothers 

In the hills of San Ramon, near Bishop Ranch, Twin Oaks has newly constructed three-story single-family homes, offering convenient travel times to work, highly rated schools in the San Ramon Valley Unified School District and luxurious retail nearby. The Arbor Collection of homes average a little over 2,800 square feet and start at a price of $1,649,995. This neighborhood overlooks the Promenade and is within minutes of Interstates 580 and 680, minimizing commute time to nearby cities in Contra Costa County. To learn more about these luxury homes, visit:

New Luxury Homes for Sale in San Ramon, CA | Twin Oaks – Arbor (tollbrothers.com)

Being an exciting and progressive city in Contra Costa County, San Ramon is a beloved city by its nearly 80,000 residents. With a booming housing market and these stunning housing options, now is the time to schedule an appointment to view these welcoming and comfortable new subdivisions.

Contact me any time for a list of homes and homesites available in these new San Ramon subdivisions.